A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph displays only a. costs associated with units produced. b. operating income associated with expected sales. c. revenues and costs associated with sales volume. d. revenues expected at targeted sales levels. e. All of these are correct.
1. A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph displays only
a. costs associated with units produced.
b. operating income associated with expected sales.
c. revenues and costs associated with sales volume.
d. revenues expected at targeted sales levels.
e. All of these are correct.
2. Fixed expenses that cannot be directly traced to individual segments are called
a. cost structure.
b. direct fixed expenses.
c. operating leverage.
d. common fixed expenses.
e. indifference point.
3. If sales remain the same and the margin of safety increases, which of the following is true?
a. The break-even point has decreased.
b. The common fixed costs have increased.
c. The break-even point has remained constant.
d. Variable costs have increased.
4. Match the type of income statement to the costs it includes.
a. Variable costing income statement
b. Absorption costing income statement
c. Both types of income statements
1. Direct materials for units sold
2. Direct labor for units sold
3. Variable overhead for units sold
4. Fixed factory overhead for the period
5. Only fixed factory overhead for units sold
6. Variable selling expense
7. Fixed selling expense
8. Administrative expense
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